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Ministry all set to start 3,600MW power generation through LNG
February 05, 2015
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Atif Khan
inShare
ISLAMABAD
Ministry of Water and Power is all set to start 3600 MW electricity generation projects through LNG in Punjab and in this regard, has applied Rs. 8.85 per unit tariff in Nepra.
The LNG would be supplied to power plants in Punjab province and initially to four power plants. According to officials ministry opposed the idea of installing of power plants near Karachi, close to LNG terminal, due to the electricity transportation constraints. According to sources tariff request is ready and would be submitted to Nepra in a day or two.
There are three distribution companies where electricity requirements are more and they would be supplied additional power. GAPCO, PESCO and LESCO are the companies which would be fed by the LNG powered power plants, official said.
The officials said that in order to install new plants to generate more than 3500 MW electricity through LNG, new plants would also be set and they would start contributing to national grid in next three to four years.
Due to comparatively high cost, of LNG, Ministry of Petroleum has been eyeing to provide imported fuel to power sector.
What would be the cost of LNG, and when deal with Qatar would be finalised, nobody in power corridors is certain, however, according to sources, deal with Qatar is in final phase and government is carefully monitoring the volatile LNG market before finalising any price.
One of the top bosses of Ministry of Water and Power told that he has no idea about the prices of LNG, however, on average around $8 per mmbtu, they have worked out per unit tariff of Rs 8.85.
Ministry of Water and Power has been claiming in recent past that in coming winter, additional cheap electricity would be added to the national grid, but sources say it would take time. As per the data of Ministry of Water and Power, the electricity load shedding may increase this year as ministry is only using efficient power plants, to keep the productions prices and ultimately bills of consumers low.
This year we will have 749MW electricity from Guddu, through gas Nandipur would add additional 400 MW, but this electricity would hardly cater per year growth in demand, official said.